This guide provides an overview of VAT in Sweden, including applicable rates, registration requirements, compliance obligations, and filing deadlines. It is designed for businesses engaging in transactions within Sweden.
is Sweden’s VAT rate on alcohol, one of the highest in Europe.
Foreign businesses that incur VAT on eligible expenses in Sweden may be able to reclaim it.
Doing business in Sweden? You’ll need to play by the rules of the VAT Act of 1994.
Yes, available for businesses below the threshold.
Sweden applies VAT on digital services based on the consumer’s location, generally utilizing the OSS system for EU cross-border services.
Generally VAT on all business expenses will be eligible to be included in a Sweden VAT refund, except for long-term vehicle rental which is not claimable. It should however be noted that certain expenses may be limited for a reclaim as part of the Sweden VAT refund. For example, certain vehicle expenses (such as hiring of means of transport, and vehicle repair costs) are only 50% claimable. Food, drink and restaurant services and entertainment costs are generally limited per person.
In addition to the standard Sweden VAT rate, there are two reduced Sweden VAT rates of 6% and 12% which are generally applied to certain foodstuff, medical equipment, passenger transport, accommodation and restaurant services. The goods generally claimable as part of a Sweden VAT refund would be subject to VAT at the standard Sweden VAT rate except for Taxi and public transport which are subject to VAT at 6%. Additionally Accommodation and Food, drink and restaurant services would be subject to VAT at the reduced Sweden VAT rate of 12%.
For Sweden VAT refunds under the 8th Directive: claims should be submitted electronically through the portal managed by the claimant’s Member State of Establishment. For Sweden VAT refunds under the 13th Directive: claims should be submitted physically by sending the hard copy documents to the Sweden VAT Authority. VAT IT will be able to assist with submitting your Sweden VAT refunds.
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